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UK games industry

If pharmaceuticals can get a tax break, why not games, asks TIGA.

TIGA, the trade association representing the UK games industry, said today that now that the Government intended to provide a sector specific tax break for the pharmaceutical industry it was time to reconsider the case for Games Tax Relief. TIGA made the comments following the Government's announcement on Monday that it planned to go ahead with a tax incentive called the patent box. This tax break will provide a 10 per cent corporation tax rate on income derived from patents held in Britain and will in particular help the pharmaceutical and biotechnology sector, which rely on patents. Few video game developers take out patents.

Dr Richard Wilson, TIGA CEO, said:

"The Patent Box will in effect provide a sector specific tax break for the pharmaceutical and biotechnology sector at an estimated cost of £1.3 billion over two years.

"Yet the Government's decision to press ahead with the Patent Box demonstrates the complete inconsistency in the Treasury with respect to business taxation. Why is it right for the Government to retain the Film Tax Credit and now to introduce what is in effect a sector specific tax break for the pharmaceutical industry and biotechnology sector but oppose Games Tax Relief for the video games industry? The Treasury is at sixes and sevens on business taxation policy.

"Now that the Government is apparently in favour of sector specific tax breaks, TIGA would urge the Government to look again at Games Tax Relief. TIGA's Games Tax Relief proposal would generate £415 million for the Treasury, create or safeguard 3,550 graduate level jobs and secure and stimulate £457 million in investment over a five year period. Crucially, Games Tax Relief would more than pay for itself: over five years, our tax break would cost £192 million.

"If Film Tax Credit and the Patent Box are justified, so is Games Tax Relief."


Notes to editors:

About TIGA:

TIGA is the trade association representing the UK’s games industry. The majority of our members are either independent games developers or in-house publisher owned developers. We also have games publishers, outsourcing companies, technology businesses and universities amongst our membership. TIGA was awarded ‘Trade Association of the Year’ and the ‘Member Recruitment Award’ at the Trade Association Forum Best Practice Awards 2010. TIGA has also been named as a finalist in the 2010 Chartered Management Institute (CMI) National Management and Leadership Awards in the category of ‘The Outstanding Organisation of the Year Award (SME)’.

TIGA's vision is to make the UK the best place in the world to do games business.  We focus on three sets of activities: political representation, generating media coverage and developing services that enhance the competitiveness of our members.  This means that TIGA members are effectively represented in the corridors of power, their voice is heard in the media and they receive benefits that make a material difference to their businesses, including a reduction in costs and improved commercial opportunities. For further information, please contact Eva Field, TIGA PR Manager on: 07814 039 983, or email 

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